Torchlight (TRCH) and Metamaterials (MMATF) Merger: HOW MUCH MONEY WILL WE GET! As stated in this recent Motley Fool article: On Feb. 16 Torchlight Energy announced that one of its lenders had converted $1.5 million worth of debt into 1 million shares of the company's stock. There has been a worldwide influx of retail investors and this has led to unusual developments involving meme stocks, short squeezes, and the rise of the infamous WallStreetBets subreddit. 60 Highfield Park Dr, Dartmouth, NS B3A 4R9 Canada, Tel: 1-902-482-5729 All rights reserved. At TRCH's current share price, it is trading at a whopping 1050% premium to its arbitrage value. See here for a complete list of exchanges and delays. Again, assuming that TRCH's assets are worthless and not including any special dividend, if the merger happened today, TRCH shareholders would face a 90% loss on their investment. For those who . Torchlight will declare a dividend of preferred stock to its common shareholders on the record date, with such dividend being payable immediately prior to closing of the Transaction. The META Note is for a 24-month term and bears interest at 8%, with principal and interest due in a lump sum at maturity. I have been investing in stocks since 2007.I have no preference for sectors or countries - I'm as comfortable owning a part of a cement miner in Peru as holding shares in a wheat farming firm in Bulgaria. The proxy statement/prospectus will be mailed to Torchlights Shareholders. Metamaterials (MMATF) and Tesla (TSLA) Rumors | Why it COULD MAKE SENSE! Torchlight shareholders on the record date will be entitled to receive a preferred stock dividend, payable immediately prior to the closing of the Transaction, that entitles them to their pro rata share of any proceeds resulting from any sale of Torchlights oil and gas assets that occurs on the earlier ofDecember 31, 2021or six months from the closing of the Transaction, and, after such time if such sales are not complete, will be entitled to receive a pro rata equity interest in a spin-off entity that holds Torchlights remaining oil and gas assets, subject to certain conditions. 1125 N. Charles St, Baltimore, MD 21201. Since 2011, approximately CAD $60MM has been invested in META, yielding a sizable IP portfolio. The newly merged company begins trading today as the Nasdaq's first 'metamaterials' stock. META's innovations have been reported in popular technology magazines such as Wired.com "Bizarre New Materials Could Make Bendy Phones That Work" and the Financial Times which listed the category of metamaterials in their "50 Ideas To Change The World" in a special annual report. The reason why investing in short squeezes is a bad idea is because they dont last long. Liquidity is low on. That gave it a market cap of only $48M. META Executive Team has an extremely deep educational background in the hard sciences with a lot of experience creating innovative products. Whats behind the move? The combined entity will continue to service a clientele of world-class OEM customers for a range of applications in the automotive, aerospace and defense, energy, consumer electronics and medical markets. I think the main risk for the bear case is a second short squeeze. Basically, Metamaterial shareholders get 75% of the new company. As well as the conversion of the company's debt to equity. We specialize in the technology and healthcare sectors. Augmented Reality applications- META has been developing the necessary technology while also acquiring other companies and their patents. Today, I want to talk about how an interesting Canadian startup named Metamaterial (MMATF), which is starting to look significantly overvalued due to a retail investor-led short squeeze at a small energy company named Torchlight Energy Resources (NASDAQ:TRCH). For additional information on Torchlight, please visit www.torchlightenergy.com. In December 2020, Torchlight Energy Resources and Metamaterial had announced a definitive agreement was signed for a business combination. There is no share available for short selling at Torchlight. Its assets are practically worthless, and the stock is worth a fraction of its current market cap that has runup on the merger agreement. TRKA Stock: Have Retail Investors Found a Gem in Troika Media Group? I view Metamaterial as an interesting startup in a rapidly growing sector, whose valuation has soared due to a short squeeze at, Torchlight. There are no shares of Torchlight available for borrowing. META has a growing patent portfolio with three core technologies; holographic, lithographic, and wireless sensing, designed for high volume applications. Opening a small short position on the CSE could be a good idea. Disclosure: I am/we are short TRCH. I intend to hold my shares for a minimum of two years. Information regarding the persons who may, under SEC rules, be deemed participants in the solicitation of proxies to Torchlights Shareholders in connection with the proposed business combination will be set forth in the proxy statement/prospectus for the proposed business combination when available. Metamaterial and it has little to do with the company itself. On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article. Here is a DD write up and estimate by user u/Mr_Delmont. commented Ram Ramkumar, Metamaterial's Chairman. All rights reserved. If the exchange rate is 1 Metamaterial share for 3.6 Torchlight shares (as mentioned in the proxy filing), that would imply that each Torchlight share would get around $1.60 in value from the . Torchlight Energy Resources announced on June 25 that it completed the necessary steps to make its merger with Meta Materials, Inc. official. 2023 InvestorPlace Media, LLC. Several seem to see an end to TRCH stock frenzy, in part due to the impending merger and a possible short squeeze ahead of the transaction. With its four full-time employees, Torchlights business doesnt seem like it should attract the sort of social media love that it has. Please disable your ad-blocker and refresh. Torchlight Energy (TRCH) -5% post-market after announcing a one-for-two reverse stock split and confirming that its merger with Metamaterial will take effect on June 28. Torchlight, Metamaterial and their respective directors, executive officers and other members of their management and employees, under SEC rules, may be deemed to be participants in the solicitation of proxies of Torchlight Shareholders in connection with the proposed business combination. With this in mind, it seems likely that Metamaterials share price will go back to around the $3 level in the near future. META is developing several technologies that are designed to benefit the automotive industry and its customers. Of course, they will additionally get whatever TRCH can sell its assets for or whatever their share is worth from the TRCH asset spinoff. Intellectual Ventures' metamaterials-based system has some distinct advantages: The microwave beam can be focused and redirected with relatively high efficiency, and with no moving parts. It also announced plans for the merger of the company to close today. Torchlight. Torchlight to acquire META through the issuance of common stock, such that at closing, the former equity holders of Torchlight would own 25% of the combined company (the "Combined Company") with the former equity holders of META owning the remaining 75% and META becoming a wholly-owned subsidiary of Torchlight. Such statements are based on the current expectations and views of future events of the management of META and are based on assumptions and subject to risks and uncertainties. META has also partnered with Lockheed Martin and the Canadian Government's Sustainable Development Technology Canada (SDTC) fund to develop metaSOLARTM a new solar energy product suitable for the transportation industry. - YouTube 0:00 / 12:23 #Metamaterials #TRCH Metamaterials (MMATF) and Tesla (TSLA) Rumors | Why it COULD MAKE. I am long in TRCH at 36K shares and long in MMATF at 60K shares. Two of the project sites are under contract to be sold and the largest asset, the Orogrande site, is likely an extension of the Permian Basin and is being marketed to major and super major oil companies. Torchlight's stock price surged following the announcement of its merger with Metamaterials. Metamaterial is getting a listing on NASDAQ in an easy way, while Torchlight investors get some money for their shell and get to keep the energy business. Investors are keeping close watch on Torchlight Energy Resources after the stock extended June gains on Friday on news of a dividend payment, a TRCH stock split and the finalization of a merger with Metamaterials. However, I think things have gotten out of hand with the valuation of Metamaterial and it has little to do with the company itself. Housing Market Crash Alert: Mark Your Calendars for Feb. 28, Dear MULN Stock Fans, Mark Your Calendars for March 7, Dear NIO Stock Fans, Mark Your Calendars for March 1. As a result,. Liquidity is low on the OTC market and there is no data on the availability of Metamaterial for sale. All articles are my opinion - they are not suggestions to buy or sell any securities. Jun. Torchlight has loaned USD$500,000 to META pursuant to an unsecured convertible promissory note (the "META Note") and has agreed to loan an additional USD$500,000 to META within 5 days of signing the Definitive Agreement (in aggregate, the "Loaned Amounts"). Effectively, TRCH's business will be extracted from the Nasdaq listing and put aside into an OTC listing where it will go to "die". Torchlight also announced that it implemented a 1 . You see, Metamaterial wants to list on a large US stock exchange, and to do this, its carrying out a reverse takeover with a small NASDAQ-listed US energy company named, Torchlight. Before GameStop, the most famous case was in 2008 when German auto giant Volkswagen (OTCPK:VLKAF) briefly became the most valuable listed company in the world with a market capitalization of 300 billion. If the dividend or share buyback yield is high - even better. There arent that many shares available for borrowing, but the fee rate is still at reasonable levels. Metamaterial shareholders may elect to receive either shares of Torchlight common stock or shares of a Canadian subsidiary of Torchlight, which will be exchangeable into Torchlight common stock (the Exchangeable Shares). TRCH will sell its assets or spin them off before the business combination happens; the combined company will get none of TRCH's assets. Holders of Exchangeable Shares will be entitled to cast votes on matters for which holders of Torchlight common stock are entitled to vote and will be entitled to receive dividends that are economically equivalent to the dividends declared by Torchlight with respect to its common stock. InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, including previous stints with Bloomberg News and as a buyside equity research editor. Torchlight is likely to end soon is because the company is taking advantage of the irrational share price increase and has launched a, Brooklyn ImmunoTherapeutics made a similar move. On April 30, the company disclosed that it inked an agreement with a fund named Lincoln Park Capital to sell shares for up to $20.8 million. for their shell and get to keep the energy business. META designs and manufactures advanced materials and performance functional films which are engineered at the nanoscale to control light and other forms of energy. - PennyQueen, Projected Markets for Metamaterials to 2023, Smart Materials: Opportunities in Structural Electronics and Electrics to 2030, Article on GlobeNewswire About Global Photovoltaic Markets, Worldwide Revenue from Electric Vehicles Since 2010, Internet of Things Forecasts and Market Estimates, largest domestic newfield discovery in over 30 years, under contract for $450k (350k to Torchlight), Conoco Phillips acquired Concho Resources. Automotive HUD See Solution De-icing / De-fogging See Solution Transparent Antennas See Solution I have no business relationship with any company whose stock is mentioned in this article. In its own words, the firm specializes in the design and manufacturing of complex films and other materials called metamaterials, which can manipulate and utilize light and other forms of energy. If it's a value stock - great. There seems to be a short squeeze at Torchlight, with which Metamaterial is merging to list on NASDAQ. We are very excited to showcase how metamaterials go beyond conventional materials and chemistry, to offer new and highly sustainable solutions with semiconductor precision, at kilometer scale.. As of this date certain stockholders of each of Torchlight and Metamaterial have executed customary voting and support agreement pursuant to which persons representing approximately 16% of Torchlight's and approximately 48% of Metamaterial's outstanding voting power have agreed to vote in favor of the transaction. About Metamaterial Inc. META is changing the way we use, interact with, and benefit from light and other forms of energy. They are composite structures, consisting of conventional materials such as metals and plastics, that are engineered. We believe this Transaction provides our shareholders with the best opportunity moving forward. 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